The more I read about economics, the more convinced I become that outsourcing/offshoring is a good, natural thing (I wrote about this before in this journal)...

Consider a thought experiment: new tools are developed that boost productivity of developers so much that 30% less developers are actually needed (This is not too far fetched, I think). What will happen ? Well, what happened when machines replaced 100,000s of textile workers, what happened when factory automation caused massive lay-offs ? How many secretaries/assistants/typers lost jobs as a result of the PC ? The same will happen here, fewer developers will be needed, so fewer will be employed. This is the free market economics, this is how these things work.

Now, consider that this new tool was invented - it's called CIRR (China, India, Russia, Romania). This tool allows companies to develop applications and do IT with less cost than they currently do. We (thankfully) are part of a free economic market, so companies naturally seek ways to do stuff cheaper.

Goverment invervention is wrong in such cases, as history proved more than once. It's like fighting a new automated tools, like making laws that factories will produce cars with 200 workers hand-crafting each part, instead of using robots.

More thoughts on this later...


comments powered by Disqus